This file photo, released by AFP, shows US Trade Representative nominee Jamieson Greer speaking after President Donald Trump announced a plan for reciprocal tariffs at the White House in Washington on Feb. 13, 2025. (Yonhap)
The US Trade Representative on Monday released an annual report on foreign trade barriers that listed South Korea's "offset" defense trade policy, emission-related regulations on imported cars and pricing policies for pharmaceuticals to name a few.
The Office of the USTR issued the 2025 National Trade Estimate Report two days before the Trump administration plans to roll out "reciprocal" tariffs to equalize what other countries impose on US exports. The new tariffs are to be customized based on trading partners' tariff- and non-tariff barriers, and other factors, including exchange rates.
The report mentioned South Korea's defense offset trade program under which Seoul has set certain conditions for foreign defense contractors to meet for defense industrial cooperation when they engage in key government procurement projects.
"The Korean Government has pursued policies that prioritize local technology and products over foreign defense technology through its defense offset program," the report said. "An offset obligation may arise for a foreign contractor should the value of the defense contract exceed $10 million."
On the motor vehicle front, the report noted that the US government has raised concerns about Korea's emission-related components regulations under Korea's Clean Air Conservation Act, as it stressed increased access to the Asian country's automotive market for US automakers remains a "key priority" for the United States.
The report also pointed out the US pharmaceutical and medical device industries' concerns over what they called a lack of transparency in Korea's pricing and reimbursement policies and a lack of substantive opportunities for stakeholder input into proposed policy changes.
It listed many issues already cited in last year's edition, including the introduction of bills in South Korea's legislature that would require foreign content providers to pay network usage fees to Korean Internet service providers.
Also among the issues was Korea's consideration of efforts to regulate dominant digital service platforms to ensure fair competition.
"These proposals would apply to a number of large US companies operating in the Korean market," it said. "The proposals also appear to apply to two large Korean companies, but exclude a number of other major Korean companies as well as companies from other countries."
As it did in the 2024 report, the report also mentioned South Korea's import ban on American beef from cattle aged 30 months or older, calling the restriction a "transitional measure."
"This 'transitional measure' has remained in place for sixteen years," it said. "In addition, Korea continues to prohibit the import of processed beef products, including ground beef patties, beef jerky, and sausage, regardless of age."
The NTE (National Trade Estimate) is an annual report submitted to the president and Congress by March 31 of each year.
"Under (President Donald Trump's) leadership, this administration is working diligently to address these unfair and non-reciprocal practices, helping restore fairness and put hardworking American businesses and workers first in the global market," Jamieson Greer was quoted as saying in a release. (Yonhap)